THE CORPORATIONS LAW

CHAPTER 2H - SHARES

PART 2H.3 - PARTLY-PAID SHARES

SECTION 254M   LIABILITY ON PARTLY-PAID SHARES  

254M(1)  General rule about shareholder's liability for calls.  

If shares in a company are partly-paid, the shareholder is liable to pay calls on the shares in accordance with the terms on which the shares are on issue. This subsection does not apply to a no liability company.

Note:

The shareholder may also be liable as a contributory under sections 514-529 if the company is wound up.

254M(2)  No liability companies.  

The acceptance by a person of a share in a no liability company, whether by issue or transfer, does not constitute a contract by the person to pay:

(a)  calls in respect of the share; or

(b)  any contribution to the debts and liabilities of the company.